Dismissal: the biggest reorganization of Amazon in 30 years is preparing
Amazon is fine-tuning an extensive layoff plan that is likely to impact much of its business.
It's a shock number. According to information from New York Times, Amazon plans to lay off nearly 10,000 employees soon. These job cuts will take place at the level of the Tech giant's appliances branch, including its voice assistant Alexa, but also in retail, which includes its few physical stores, and e-commerce. Human resources will also be affected.
A surprising decision by Amazon
To put that 10,000 number in context, that's 3% of Amazon's employees worldwide, and 1% of its workforce. We know that many people, especially delivery people, work on a piece-by-job basis for the Tech giant, without benefiting from employee status.
There would be a form of paradox in this announcement. Amazon is indeed a victim of what is known as “the great resignation”. Behind this name, we find the idea that some workers have decided to abandon companies whose working conditions are deemed too difficult to restore meaning to their lives. To remain attractive, the company has significantly increased the remuneration of some of its employees, and recruitment is one of management's major concerns.
Similarly, it should be remembered that the company's payroll increased considerably due to the pandemic. The growth of e-commerce has indeed greatly favored Amazon, and the latter had to recruit en masse for two years.
But as the prestigious American newspaper reminds us, the Tech giant has already reduced the sails on some of its activities this year. It thus closed its Amazon Care health care service, Scout, its delivery robot also paid the price for this period, while Fabric.com, a subsidiary which had been selling supplies for thirty years, also ceased to operate.
Amazon in the footsteps of Meta and Twitter
Jeff Bezos' firm has not yet wished to respond to our colleagues. If this news is confirmed, it would put the company in the footsteps of other very large American technology companies.
We know that Meta confirmed last week that it was going to lay off 10,000 employees, i.e. 13% of its workforce. Similarly, and in the wake of the takeover of Twitter, around half of the employees had to leave the company and were made redundant, i.e. around 3,600 people. Following this announcement, the company seemed to backtrack and recall some of them that may be useful in the future.
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